LVMH Will Support The New Luxury Brand.

France

group

Recently announced that it will set up a special investment institution for the first time luxury brand: LVMH Luxury Ventures, and appoint Julie Bercovy, the second in charge of the merger and Acquisition Department, as the person in charge. The appointment will take effect immediately.

According to the world clothing and shoe net, the initial fund of LVMH Luxury Ventures is 50 million euros, and Julie Bercovy will use this fund to acquire a minority stake in some new luxury brands.

These brands need to have high growth potential and attractive business models, because

With the increasingly low industrial thresholds and the endless distribution of new distribution models, such companies have sprung up like mushrooms, but it has been difficult to attract the attention of LVMH group mergers and acquisitions departments because of their small business scale.

According to the world clothing and shoe net, LVMH investment brand will involve leather products, watches, jewelry, jewelry, perfume, cosmetics and other categories. The annual sales scale of the brand is 200~1000 million euros, and the proportion of the acquisition of equity is about 15%~20%.

The insider said that the ultimate goal of LVMH is not to acquire these cutting-edge brands, but to provide strong business and financial support for the latter in the early critical stage, such as planning strategies to help them grow rapidly.

Each brand will remain independent, and Julie Bercovy will provide advisory advice.

Julie Bercovy graduated from the HEC Business School of France, and from 2004 to Lazard, a famous investment bank, Lazard (Lazard Fr RES), which had traded with the group for Italy luxury jewelry brand Bvlgari and Bulgari.

After the establishment of LVMH Luxury Ventures, she is not eager to initiate the first investment, but tends to patiently evaluate potential investment targets.

The establishment of LVMH Luxury Ventures in the structure, scale and direction are very different from LVMH L private consumer fund L Catterton.

The predecessor of L Catterton was the private equity fund of Catterton and LVMH of the US private equity fund and L capital, a real estate investment organization. The two sides completed the merger early last year.

L Catterton is currently the world's largest private consumer product fund, with 17 offices on five continents and several funds running.

LVMH and its controlling shareholder, Groupe Arnault, currently hold a stake in L Catterton40%, which is mainly invested in growing consumer businesses, with a single investment of more than 15 million euros.

In France, investment institutions active in the field of fashion mainly include:

Investment fund Mode et Finance 2 managed by French state-owned investment bank Bpifrance

The private equity fund, SMCP, is founded by the French fashion group, three former executives of Fr, d e ric Biousse, Elie Kouby and Emmanuel Prad re.

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